 "Bayer CropScience earmarks Euro 2.4 bn for capacity expansion between 2013 and 2016")
To meet the strong demand for its products, Bayer CropScience is adding Euro 1 billion to its investment programme, bringing total capital expenditures for the period 2013 to 2016 to approximately Euro 2.4 billion. As a result of the accelerated investment programme, the production volume of key active ingredients for crop protection products is expected to increase significantly. “Demand from farmers for our products is increasing so strongly that we are significantly stepping up our supply chain capacity to serve farmers around the world with much needed innovative agricultural solutions. About 900 million people remain hungry today and the world population is growing strongly. We need to raise agricultural productivity and at the same time advance sustainability in farming and ensure protection of the environment. We aim to achieve this by developing innovative solutions and services that can help agriculture to contribute to the healthy development of society,” said Liam Condon, CEO, Bayer CropScience, at the company’s annual press conference in Monheim, Germany.
One integral element of Bayer CropScience’s investment plans is the construction of a new plant in Mobile/Alabama for the production of the herbicide glufosinate-ammonium, marketed in the US under the brand name Liberty™. The start-up of the new plant is anticipated probably for the fourth quarter of 2015, in time for the 2016 growing season. “With about Euro 380 million earmarked for this new facility, this is the biggest single construction project in the history of Bayer CropScience,” said Condon. Along with capacity expansion projects currently under way at other sites, this new facility will contribute significantly to the company’s target of more than doubling global product supply for this important active ingredient.
In addition to the ramp-up of its supply chain capacity in Crop Protection, another element of the company’s growth plan is the implementation of its Seeds strategy. Bayer CropScience plans to further strengthen its position in established crops such as vegetables, rice, oilseed rape and cotton, and to build up significant market positions in soybean and wheat.
A second seed investment focus for the company is wheat, the world’s most important staple crop. Here, Bayer CropScience is building a leading global wheat breeding network, with the objective of developing high-yielding varieties adapted to local growing conditions. First varieties are expected to come to market in 2015.
The press release added that Bayer CropScience was on track to grow annual sales towards Euro 9 billion in 2013 and towards Euro 10 billion in 2015.
One integral element of Bayer CropScience’s investment plans is the construction of a new plant in Mobile/Alabama for the production of the herbicide glufosinate-ammonium, marketed in the US under the brand name Liberty™. The start-up of the new plant is anticipated probably for the fourth quarter of 2015, in time for the 2016 growing season. “With about Euro 380 million earmarked for this new facility, this is the biggest single construction project in the history of Bayer CropScience,” said Condon. Along with capacity expansion projects currently under way at other sites, this new facility will contribute significantly to the company’s target of more than doubling global product supply for this important active ingredient.
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In addition to the ramp-up of its supply chain capacity in Crop Protection, another element of the company’s growth plan is the implementation of its Seeds strategy. Bayer CropScience plans to further strengthen its position in established crops such as vegetables, rice, oilseed rape and cotton, and to build up significant market positions in soybean and wheat.
A second seed investment focus for the company is wheat, the world’s most important staple crop. Here, Bayer CropScience is building a leading global wheat breeding network, with the objective of developing high-yielding varieties adapted to local growing conditions. First varieties are expected to come to market in 2015.
The press release added that Bayer CropScience was on track to grow annual sales towards Euro 9 billion in 2013 and towards Euro 10 billion in 2015.